January 17–24, 2016

The World Economic Forum

The World Economic Forum in Davos takes place this week from Wednesday to Saturday. Several of the world’s most important figures will convene to the Swiss town. Economic issues are likely to be discussed especially with the current economic climate. Other important issues such as migration will also be debated.

The Bank of Canada policy announcement

The Bank of Canada will set interest rates this Wednesday. Rates are expected to stay the same even though some predict an interest rate cut. This comes at a time when the oil price slump and other variables are harming the Canadian economy. Retail sales and the CPI measuring inflation will also be released then giving an update on the economy’s performance.

US economic indicators released

Important numbers are also coming out of the US. Quarterly earnings reports for several important S&P500 companies will be released. Goldman Sachs, Morgan Stanley and other banks, as well as GE, IBM, Delta and other corporations will release their reports, as well. CPI for December will give an indication of the state of the US economy and the effects of the Fed’s historic rates rise, inflation is expected to be up showing the strength of the American economy and keeping it on course for future rate increases.

World Economic Outlook

The IMF will release its semi-annual World Economic Outlook updated policy report. It is entitled “Subdued Demand, Diminished Prospects” and comes at a time of economic uncertainty and problems from commodity and oil price slumps, Chinese economic weakness among other risk factors and problems.

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European Central Bank policy announcement

The European Central Bank will be setting its monetary policy. It is expected to be unchanged after the expansionary measures at the end of 2015. Weak inflation in the Euro Area are likely to push for further expansionary measures later on with the ECB president expected to give hints. This comes during the week when the Euromoney’s Central and Eastern European Forum 2016 takes place bringing together several regional central bank governors and finance ministers.

Asian Investment Infrastructure Bank

The Asian Investment Infrastructure Bank had its opening ceremony this Saturday. The AIIB is often touted as a competitor to the World Bank and US dominance. Australian Prime minister will be on a visit to the US which is interesting timing given that Australia went against American wishes and joined the bank in 2015.